Institutional Quality in Attracting Foreign Direct Investment to Small Countries

  • Tajul Ariffin Masron Universiti Sains Malaysia
  • N.A.M Naseem Universiti Putra Malaysia
  • Effiezal Aswadi Abdul Wahab Curtin University

Abstract

Institutional quality (IQ) has been proven by many studies as generating positive impact to economic development, including via luring more foreign direct investment (FDI) inflows. However, the inconsistent reality relating to FDI inflows and IQ of the host countries, especially in small countries has led this study to re-examine the effectiveness of IQ in promoting FDI inflows. Hence, selecting small countries in four regions located around four large countries, namely Brazil, Russia, India and China (BRIC) as a case study, results confirmed that the effectiveness of IQ is gradually eroded if IQ in BRIC is also relatively improved.

Author Biographies

Tajul Ariffin Masron, Universiti Sains Malaysia

School of Management, Universiti Sains Malaysia

N.A.M Naseem, Universiti Putra Malaysia

Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia

Effiezal Aswadi Abdul Wahab, Curtin University

School of Accounting, Curtin Business School, Curtin University

Published
2018-11-09
How to Cite
MASRON, Tajul Ariffin; NASEEM, N.A.M; ABDUL WAHAB, Effiezal Aswadi. Institutional Quality in Attracting Foreign Direct Investment to Small Countries. Malaysian Journal of Economic Studies, [S.l.], v. 55, n. 2, p. 267-284, nov. 2018. ISSN 1511-4554. Available at: <https://mjes.um.edu.my/index.php/MJES/article/view/14568>. Date accessed: 14 nov. 2018.
Section
Articles